Nature Finance Could Cut Latin America’s $153 Billion Biodiversity Gap by 2030

The study frames nature finance as part of the region’s economic development, since biodiversity loss can weaken productivity, water supplies, public finances, exports, investment prospects and economic stability.

Latin America and the Caribbean need an estimated $170 billion each year to conserve biodiversity, restore ecosystems and use natural resources sustainably, according to a new study by the Inter-American Development Bank (IDB) and the Economic Commission for Latin America and the Caribbean (ECLAC). Current financing provides about $17 billion annually, leaving a gap of nearly $153 billion, equal to roughly 2.1% of the region's gross domestic product. The report describes the first comprehensive regional estimate of the funds needed and the financing already flowing toward biodiversity.

The study frames nature finance as part of the region's economic development, since biodiversity loss can weaken productivity, water supplies, public finances, exports, investment prospects and economic stability. Spending on natural capital can support jobs, resilience and competitiveness, and help attract private investment. The report's analysis and recommendations focus on aligning finance with conservation, restoration and sustainable use across economic sectors.

A large share of the need is tied to agriculture

Nearly 60% of estimated financing needs are linked to shifting agriculture and livestock toward more sustainable practices, making changes in food production central to closing the gap. The report points to the region's natural wealth as an asset that can underpin productive development and help address persistent inequalities. It also stresses that effective investment depends on capable institutions, sound governance and coordination among public, private, multilateral and development partners.

A broad financing mix could narrow the gap

An ambitious transformation scenario could reduce the biodiversity financing gap by about 74% by 2030, combining public resources, private capital, innovative financial tools and redirected subsidies. The report calls for more efficient use of existing spending, reform of incentives that harm biodiversity, stronger public financing and greater private-sector participation. Its proposed approach also includes expanding instruments such as blended finance and aligning investment decisions with national and international biodiversity commitments.

Nature is part of the region's development strategy

IDB biodiversity chief Gregory Watson described the region as having an opportunity to lead globally in nature finance, with investment and economic incentives aligned to conservation outcomes. ECLAC's Angela Maria Penagos Concha emphasized that current flows cover barely one-tenth of estimated needs and that fiscal constraints make better use of existing resources and additional financing essential. The study arrives as countries work to implement the Kunming-Montreal Global Biodiversity Framework and increase financing for biodiversity worldwide.